STAND. COM. REP. NO. 671-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2360

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2360, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PAID FAMILY LEAVE,"

begs leave to report as follows:

The purpose of this measure is to require the Department of Labor and Industrial Relations to:

(1) By January 1, 2029, establish a family and medical leave insurance program and begin collecting payroll contributions to finance the program; and

(2) By January 1, 2030, begin receiving claims and paying benefits.

Your Committee received testimony in support of this measure from the Office of Wellness and Resilience; Hawaii State Commission on the Status of Women; one member of the Maui County Council; one member of the Hawaiʻi County Council; Hawaiʻi Family Caregiver Coalition; Chamber of Sustainable Commerce; Hawaiʻi State Coalition Against Domestic Violence; Hawaiʻi Public Health Institute; Healthy Eating + Active Living; Green Party of Hawaiʻi; Early Childhood Action Strategy; AARP Hawaiʻi; Hawaiʻi Alliance of Nonprofit Organizations; Hawaiʻi Alliance for Progressive Action; Hawaiʻi Workers Center; Hawaiʻi Women Lawyers; United Public Workers, AFSCME Local 646, AFL-CIO; University of Hawaii Professional Assembly; Family Values @ Work; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; AAUW of Hawaii; Hawaiʻi Children's Action Network Speaks!; Hawaiʻi State Democratic Women's Caucus; Hawaii Appleseed Center for Law & Economic Justice; American Civil Liberties Union of Hawaiʻi; Nurture Mental Health; and numerous individuals. Your Committee received testimony in opposition to this measure from the Department of Labor and Industrial Relations; Society of Human Resource Management – Hawaii; NFIB Hawaii Chapter; Grassroot Institute of Hawaii; Hawaii Energy Marketers Association; Hawaii Transportation Association; Maui Chamber of Commerce; and one individual. Your Committee received comments on this measure from the Department of Taxation; Department of Human Resources Development; Chamber of Commerce Hawaii; and one individual.

Your Committee finds that the United States is the only developed country that does not provide national paid family leave. Your Committee further finds that thirteen states and the District of Columbia have passed paid family leave laws, and the states with paid family leave have seen significant health, social, and economic benefits. Many of the State's working families do not have adequate amounts of paid leave, which causes financial hardship and increased dependency on public assistance during times of illness or caregiving. This measure will provide working families with family and medical leave benefits, which can help workers retain employment while caring for family and help businesses retain key employees and remain competitive.

Your Committee notes that the Department of Labor and Industrial Relations stated in its testimony before your Committee that it has secured a consultant to prepare a request for proposal to retain an actuary and obtain a legal analysis. The actuary will review Hawaii's workforce demographics, wage data, and potential beneficiaries to assess the financial viability of a paid family leave program, which is to be completed by the start of the next legislative session.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2360, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair